Get latest articles and stories on India at LatestLY. ED’s Mumbai zonal office arrested Kanakia on January 5 under the provisions of the Prevention of Money-Laundering Act (PMLA), 2002. He was produced before a PMLA Special Court, Mumbai, on January 6, which remanded him to ED custody till January 9.
New Delhi [India], January 8 (ANI): The Enforcement Directorate (ED) on Thursday said it has arrested Prateek Kanakia, CEO of The Green Billions Limited (TGBL), in connection with alleged money-laundering case involving Rs 47.32 crore.
ED’s Mumbai zonal office arrested Kanakia on January 5 under the provisions of the Prevention of Money-Laundering Act (PMLA), 2002. He was produced before a PMLA Special Court, Mumbai, on January 6, which remanded him to ED custody till January 9.
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The investigation revealed that the accused had fraudulently availed and diverted a loan amounting to Rs 50 crore from Broadcast Engineering Consultants India Limited (BECIL), a central government Public Sector Undertaking, causing wrongful loss to it, the ED said in a release.
During 2018, ED said, the Pune Municipal Corporation (PMC) issued an Expression of Interest (EOI) for setting up and operating a waste-to-energy plant. “The project was awarded in 2019 to Variate Consultants, and subsequently, in 2020, a concession agreement was executed between PMC and Variate Pune Waste to Energy Private Limited, a Special Purpose Vehicle (SPV) formed for the project.”
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“Thereafter, The Green Billions Limited, the company of the accused, entered into a binding term sheet to acquire the said SPV and approached BECIL to form a consortium, wherein BECIL was to act as the Project Management Consultant and financial partner for the PMC project,” said the federal agency.
In 2022, the agency said, the Indian Renewable Energy Development Agency Limited (IREDA) sanctioned a short-term loan of Rs 80 crore to BECIL, out of which Rs 50 crore was further sanctioned by BECIL to TGBL.
ED investigation revealed that Kanakia, through his private firm and in connivance with former employees of BECIL, fraudulently availed the said credit facility in the name of the Pune Waste-to-Energy Project by using forged and fabricated documents and without complying with the stipulated conditions.
“The funds were diverted and misappropriated, and no work was undertaken at the project site, as confirmed by officials of Pune Municipal Corporation,” the ED said in the release.
ED investigation further revealed that the Proceeds of Crime were utilised by the accused for personal expenses and to maintain a lavish lifestyle, including the use of luxury vehicles and taking on rent and renovation of high-end residential premises situated in prime locations of Mumbai and Delhi, thereby projecting a false impression of financial prosperity. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia’s leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)
